Barker1e ch01 Geoff Hunt Silverdale

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©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Why Social Media?Why Social Media?


After completing this chapter, students will be able to:


LEARNING OBJECTIVES

• Explain why social media is important

• Define social media marketing

• Explain the 7 myths of social marketing

• Describe a brief history of social media marketing

• Explain how social media marketing is different

• Identify the characteristics of a successful social media marketer

• Describe the careers in social media marketing

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Finding a Way Through Social Media

• Lots of people are “doing” social media marketing

• Seek an efficient and effective path• Avoid random direction approaches• Apply a decisive strategy for success

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©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4

Table 1.1 Popular Social Media Sites, as of December 2011


What Is Social Media Marketing?

Social media marketing (SMM) uses social media portals to positively influence consumers toward a website, company, brand, product, service, or a person. Typically, the end goal of social media marketing is a “conversion,” such as the purchase of a product, subscription to a newsletter, registration in an online community, or some other desirable consumer action.

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©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Fiskars Creates a Social Media Communityaround Scrapbooking

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The Seven Myths of Social Media Marketing

1. Social Media is Just a Fad

2. Social Media is Just for the Young

3. There is No Return in Social Media Marketing

4. Social Media Marketing isn’t Right for This Business

5. Social Media Marketing is New

6. Social Media Marketing is Too Time-Consuming

7. Social Media is Free

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Social Media Myth #1: Social Media Is Just A FadInstead, social media is:•Founded in community, socialization, and word-of-mouth marketing•Based on a stable premise that people are social and want to connect with other people•Related to technological evolution that continues to provide new and attractive means for people to interact•Rooted in core trends and behaviors in social media interaction that remain stable over time

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Figure 1.1 Social Media Usage Outpaces Traditional Media

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*Forrester Research Web-Influenced Retail Sales Forecast, Forrester Research, Inc., December 2009


Social Media Myth #2: Social Media Is Just For The YoungInstead, the reality is:• Older users are among the fastest growing

demographics on most social media sites• YouTube - 18 to 55, evenly divided between

males and females• Facebook - 61% of those 35 to 54 and 48% of

people over 55 have Facebook pages

• Users span all age and income brackets• Social networks are increasingly being adopted by

older populations

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Social Media Myth #3: There Is No Return In Social Media MarketingInstead, social media returns are:• Difficult to measure, and many businesses do not

currently measure their social media efforts• A frequent topic for conferences of online

marketing experts• Measured in a variety of different ways such as:

savings in customer service, online word-of-mouth promotion (buzz), improved brand awareness and reputation, increased brand loyalty, and sale lead generation

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Social Media Myth #4: Social Media Marketing Isn’t Right For This Business

Instead, social media marketing:• Is just as relevant to B2B companies as to B2C

firms• Has a powerful ability to drive word-of-mouth or

recommendations from friends• Influences search as a resource because search

results frequently include social media sites

Even if businesses don’t believe in the value of engaging in social conversations as a part of marketing, there is no denying the value of

a strong business or product presence in search results.

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United Breaks Guitars

The Story:• Dave Carroll, a musician flying United Airlines,

witnessed baggage handlers throwing his $3,500 Taylor guitar resulting in $1,200 in damages.

• Nine months of efforts to recover costs of the damages ended with, “This is it, there’s going to be nothing you’re going to get out of United Airlines.”

• On July 6, 2009, Carroll posted a video to YouTube titled “United Breaks Guitars” which received over 10 million views by August 2011.

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United Breaks Guitars

The Lesson:• Gone are the days when millions in advertising

and PR could control the message—now when customer service is lacking, an individual can use the social web to communicate with the world, sometimes with nothing more than a song and clever video.

• Every interaction with the customer is a marketing event.

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Social Media Myth #5: Social Media Marketing Is NewInstead, what’s new is:• Technology and media are changing the role

social, behavioral, and economic concepts play in modern marketing efforts

• Conversations are now public, online, and viewable for the indefinite future

Consumers are already on social sites, talking about businesses on their Facebook pages, blogs, and Twitter accounts, whether a business acknowledges this or not.

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Social Media Myth #6: Social Media Is Too Time-consumingThree key ways to limit the time investment in

social media marketing:

1. Look for underutilized employees who can spend some of their time on social media marketing

2. Leverage efficiency tools top streamline social media efforts

3. Use mobile devices to boost efficiency

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Social Media Myth #7: Social Media Is FreeWhile most sites do not have a fee for usage, costs

include:• Time and resources• Fees for producing and creating content• Fees for consultants or agencies involved in

building and executing the social media strategy

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The History of Social Media Marketing• 1978: first “spam” email message was sent• 1979: USENET “newsgroups”• 1985: The WELL bulletin board system (BBS)• 1999: Napster• 2001: Wikipedia• 2003: MySpace, Delicious, SecondLife, and

Facebook• 2004: Flickr• 2005: YouTube• 2006: Twitter

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Figure 1.2 Social Media Timeline

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Why Social Media Marketing is Different

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What are the Characteristics of a Successful Social Media Marketer?

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Careers in Social Media Marketing

• Spending on social media is forecast to expand substantially between 2009 and 2014

• Demand for social media marketers is likely to increase in the near future

• The majority of the jobs in social media are freelance rather than full-time

• The first step toward landing a social media job is getting involved

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Figure 1.3 Firm Spending on Social Media Marketing

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Exercise: JetBlue Uses Social Media to Connect with Customers

• JetBlue is an active participant on Twitter, YouTube, and Facebook

• Current social media efforts were launched from a YouTube apology in February 2007

• Twitter usage started with listening, grew to responding to questions, and is now medium for full blown conversations

• For JetBlue, social media usage is “less about direct sales and more about brand building”

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Review Questions

1. Why do you think JetBlue became active on more social media platforms following the February 2007 incident?

2. The apology of the CEO of JetBlue took place several years ago. Do you think that strategy would still be an effective one for a company today? Why or why not?

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Review Questions

3. How does JetBlue’s response to the stranding of passengers compare to United’s response to the broken guitar (from the earlier case study)? Based on the information here, which do you think was more effective and why?

4. Why has Twitter become the most popular social media platform for JetBlue in helping them improve customer satisfaction?

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